Category Archives: UNG

Nat-Gas … Another Set-Up

June 30, 2024 By in Natural Gas, UNG, Wyckoff, ZeroHedge

Watch For The ‘Bounce’

Nat-Gas, UNG, is at support right now.

So, what happens next?

Before we get to that, let’s first be aware of what’s being presented to the public. This recent link, says that upon increase in production, ‘go short’ (absolutely, definitely, not advice, not a recommendation).

So, the advice is, somehow tie the fundamentals to a trading action?

Given that going short on increase of production would even work (I wouldn’t do it), how is anyone going to figure out whether those numbers are real?

So, we choose not to play the game and instead, go straight to the truth, price action.

Nat-Gas UNG, Daily

First, it’s important to note the ‘Risk At A Low’, area.

That’s the location of this update.

With price action now at support, anything can happen.

There could be an immediate bounce, downside penetration, or some combination.

Note that Force Index (purple rectangle), shows action as ‘well behaved’.

That is, there’s no apparent craziness as was seen to the far left of the chart with wide swings in Force Index.

If UNG, does bounce higher from here, it increases the importance of the support level.

That, in turn, gives us a ‘heads up’; keep watching for a subsequent downside penetration and possible Wyckoff ‘spring’ set-up.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

The CORN Collapse

June 29, 2024 By in $SPSIBI, Biotech, Corn, Derecho, Food Supply, Genesis 41, ice-age-farmer, Natural Gas, SPBIO, Teucrium, UNG, Wyckoff, XBI

Another Nat-Gas Scenario?

The beginning of a bullish set-up?

The financial press says the wipeout in corn, is because of oversupply.

That, may or may not, be true.

Since Wyckoff analysis doesn’t care about the press, we’ll use it to discern the (potential) truth.

Let’s see how it did in the recent past. The Nat-Gas (UNG) low, was identified to-the-day, link here.

From that post, was this:

“Downward thrust in Nat-Gas UNG, appears to be exhausting itself after a 20-month, bear market. Risk is never zero, but currently appears to be at a low … “

So, it was. Afterwards, UNG bounced near, but never touched that low.

Twelve trading days later (Fibonacci 13 days, from low), it reversed decisively to the upside.

The Same, But Not

On the medium, to long-term, CORN action is the same as biotech (XBI), but opposite.

Instead of an up-thrust two-years in the making, we may have a spring set-up, taking just as long if not longer.

Where’s The ‘Potato’?

So, where’s the ‘Potato Head Gambit‘?

It’s possible, mishaps could be on the upside instead of down. It worked last time; here and here.

That ‘event’ went straight across the most-dense areas of the corn belt.

All of which, brings us to the chart.

Teucrium CORN Fund, Weekly

We’re in spring position now (not advice, not a recommendation).

However, shown on the chart is a potential low at the Fibonacci 76.4%, retrace.

The financial press article in the very first link (above) does have some useful information.

That is, ‘spec’ traders are adding to short positions.

‘Spec’ traders are the least informed.

It’s the ‘commercials’, professionals working the industry that are most informed.

Monitoring what they (the commercials) are doing is the potential key to the next likely direction for CORN (not advice, not a recommendation).

Stay Tuned

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Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Life Insurance … Another ‘Sleeper’

May 4, 2024 By in Life Insurance, MET, Natural Gas, UNG

The Biggest, Of All?

Just like the Nat-Gas reversal, which is now on-going, Life Insurance may be the biggest downside sleeper of all (not advice, not a recommendation).

Searching the YouTube vortex, turns up this, on the largest cap of the sector; Met Life, MET (time stamp 2:27).

It’s the usual suspects. Another (almost) knee-jerk, ‘buy-the-dip’.

Let’s take a look at what’s really happening with Life Insurance, looking at the long-term view.

Life Insurance Sector, Weekly Close

The last major melt-down during ’07 – ’09, had the index collapse over 76%

Moving to the topping action highlighted in the zoom area, we have the following:

Then, on to the largest cap in the sector, our chief cook and bottle washer, Met Life (MET), there’s this:

We may find out as early as next session, if MET is in a downtrend or spring position, ready to move higher (not advice, not a recommendation)

The chart nuance advocating against a viable spring is the reduced upside volume on Friday when compared to a day earlier; up volume contracts 46%, when compared to downside volume on Thursday.

Stay Tuned

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Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Oil Backs Off … Nat-Gas Bottoms

April 17, 2024 By in Natural Gas, Oil, Oil & Gas, Prechter, UNG, USO

All, In Just Three Days

Let’s get started with where we left off, with oil.

The last update said this:

‘largest bullish positions, gasoline futures and options’

The one before that, said this:

‘ … we’re at the 161.8%, projection and USO is hesitating; at the same time, Nat-gas, UNG, appears to be forming a long-term bottom’

The implication was: We’re at a Fibonacci level in USO, while the ‘herd’ has positioned themselves (massively) long and Nat-Gas appears to be reaching a (potential) long-term low.

Three trading days later, we have this:

Oil Tracking Fund USO, Weekly

If you look closely, the grey dashed line, the Fibonacci 161.8% projection, is just visible and extends out of the green line, highlighting that level.

A possible, nascent reversal.

Way back in 1902, after studying the markets intently, Wyckoff, discovered the following (paraphrasing):

‘Forces were at work, moving prices around, independent of any fundamentals, not connected to any valuations.’

Nearly, a century later, Prechter says this as well in one of his many interviews (paraphrasing, again).

‘If somehow, I was able to give you the newspaper headlines for tomorrow, you would not be able to tell me if the market was going to go up or down’.

The media is presenting oil (gasoline) and Nat-Gas prices as inversely correlated. Looking at the topping chart of USO and the bottoming chart of UNG, it’s believable … for now.

Downward thrust in Nat-Gas UNG, appears to be exhausting itself after a 20-month, bear market.

Risk is never zero, but currently appears to be at a low for UNG (not advice, not a recommendation).

Stay Tuned

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Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Biotech Breakdown … Is This It?

April 16, 2024 By in $SPSIBI, Dr. Elder, Ed Dowd, Greg Hunter, LABD, SPBIO, UNG, USO, XBI, ZeroHedge 1 Comment

‘Respecting’ Fibonacci … So Far

Before we get started, biotech may have decisively turned the corner to the downside with this, just out … maybe.

‘Zero Respect For Thieves’

Before we get started, with getting started, a brief mention on thievery.

Years ago, Dr. Elder stated he had ‘zero respect for thieves’; those who had stolen his book tile, ‘Trading For A Living’, in various forms.

When you have limited skills and even less insight, thievery is the only way to go … that is, until you’re found-out.

Turns out, the analysis of silver SLV, posted on this site (here and here) nearly two weeks ago, specifically the presence of SLV volume ‘spikes’ at inflection points, may have been ‘lifted’ without citation by a prominent YouTuber (who will not be named … yet).

It may have been just a coincidence. If so, all is well. However, a ‘second time’, not so much. So, let’s all play ‘nice’ shall we? 🙂

Now, on to biotech.

Biotech, XBI, Daily

This update is being released just before the open. It looks like XBI, is about gap-lower.

We see in the chart, XBI, is respecting the Fibonacci projections.

As with the recent oil market analysis and USO, (here and here) we let the market decide what areas are important.

In the case of XBI, and unless significant demand comes in, lower prices appear to be the most probable direction (not advice, not a recommendation).

Stay Tuned

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Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

‘Bullish … ‘, Gasoline Futures

April 14, 2024 By in Oil, Oil & Gas, UNG, USO 2 Comments

The Crowd Bets On Higher Prices

Just a few hours after the update on Nat-gas and oil was released, we have this from ZeroHedge, link here.

‘largest bullish positions, gasoline futures and options’

So, what do we think is going to happen next?

Stay Tuned

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Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Nat-Gas, Goes Negative

April 13, 2024 By in Natural Gas, Oil, Oil & Gas, UNG, USO, Wyckoff, ZeroHedge 3 Comments

… At Least, In Texas

Storage facilities in Texas are paying to have someone take excess Nat-gas.

As this link says, the ‘reason’ for negative Nat-gas, is high oil prices prompt drillers to increase oil production, along with (by-product) Nat-gas, driving down the price.

We’ll cover Nat-gas (UNG) in a separate update which by the way, on Friday, posted another Wyckoff spring set-up.

The question du jour is, ‘does oil go higher from here?‘

If oil is going higher (or likely to go), then Nat-gas may be pressured downward for longer.

International Chaos

The amount of ‘pontificating’ from the media on what oil is, or is not going to do, is mind-numbing.

Wyckoff himself said, we’re attempting to find out ‘the next probable direction’ for the market, which of course, can never be known for sure.

With that, let’s go to the truth of the matter, the chart.

Oil Tracking Fund, USO, Weekly

Shown on the chart, is a Fibonacci projection from the lows of March 2023, to the first wave high of April ’23, then back down to the wave low, in May ’23.

It might be hard to see, so the first waves are highlighted with green dashed lines.

At this point, instead of asking the question ‘where’s oil going?’, a better question may be, ‘is the chart of USO “respecting” the Fibonacci projections?’

Looking at the chart, it’s an obvious, yes.

Right now, we’re at the 161.8%, projection and USO is hesitating; at the same time, Nat-gas, UNG, appears to be forming a long-term bottom (not advice, not a recommendation).

Stay Tuned

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Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Nat-Gas … The ‘Sleeper’

April 6, 2024 By in Gold & Silver, Natural Gas, UNG, Wyckoff

Any Bulls Left?

It’s all bearish on the Nat-gas front.

Way back in 2001, it was all bearish on the gold front as well; lows were around $254/oz. – $255/oz.

How did that work out?

No, Nat-gas is not gold but at this point, it’s possibly just as ignored as gold was, then.

The strategy or potential reasons for a rally in Nat-gas, have already been addressed here and here.

So, we’ll cut to the chase, looking at the proxy, UNG.

Natural Gas, UNG, Daily

It’s possible, the March 27th, penetration of support (covered here) and subsequent recovery, is a Wyckoff spring set-up (not advice, not a recommendation).

If we’re in a spring with the wedge in-effect, meaning, the market’s not going to morph into another structure, then it’s likely, Friday’s action was a test of both the spring and the wedge (breakout).

Supporting the ‘test’ scenario, we have Friday’s action pulling back to the lows; volume contracts by over 37%, when compared to the day prior, Thursday.

Of course, this is all very nuanced action and can be blown away at the next session.

However, as with our gold example, no one was looking for a major, long-term reversal at the time.

Stay Tuned

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Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

The Thrust Is Gone … Nat-Gas

April 1, 2024 By in BOIL, Natural Gas, UNG 1 Comment

Before It Can Go Higher …

Before Nat-Gas can reverse and head higher, it has to first, stop going lower.

One of the ways a market tells us it’s ready for reversal, is to print what’s called ‘shortening of the thrust’.

Essentially, each net movement over time (whether up or down), becomes shorter.

We can see that in Nat-Gas proxy, UNG, below.

Natural Gas UNG, ETF, Daily

Nat-Gas began its current decline around early October last year. Note, how each successive thrust lower has become shorter in net distance.

The inference is, ‘a reversal may be at hand’ (not advice, not a recommendation).

Recall, the prior post on UNG, link here, indicated the potential for reversal:

“The chart shows UNG, has penetrated support and is just ‘hanging’ there, unsure of what to do next.

It’s at The Danger Point®, where the potential risk of going long is least (not advice, not a recommendation).”

To be precise, in the futures market early the next day, a new low was posted; that new low was reversed by the open, with UNG higher.

Stay Tuned

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Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Nat-Gas Slams Target, New Lows

March 27, 2024 By in Appalachia's Homestead, Natural Gas, UNG, Wyckoff 2 Comments

Near The Reversal?

Nat-Gas, UNG slammed past the target forecasted five trading days ago, in this post.

Today, UNG opened gap-down, then traded down even more.

Currently (as of 1:10 p.m., EST), we’re at 14.38, down -3.88%, for the day.

Penetrating support to new lows, by definition puts UNG in Wyckoff ‘spring’ position.

That does not guarantee an upside reversal, it just means the conditions are met.

Strategy First

The potential for problems with supply have already been presented here, here, and here.

The human cost of what’s going on in our nation, can best be described by this post from Appalachia’s’ Homestead.

All of which brings us to the chart of Nat-Gas, UNG.

Natural Gas, ETF Proxy, UNG, Daily

The chart shows UNG, has penetrated support and is just ‘hanging’ there, unsure of what to do next.

It’s at The Danger Point®, where the potential risk of going long is least (not advice, not a recommendation).

Typical market behavior, is to come back and test a breakout whether it’s resistance or support.

For UNG, that would be in the vicinity of last week’s trading range, near UNG 14.90 – 15.00 (not advice, not a recommendation).

Summary

Know your market.

The futures for nat-gas are volatile and like to generate spikes both on the upside and down.

Tomorrow, we have the EIA nat-gas report; the possibility for more volatility is just one day away.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279